05:17 PM
Saturday ,
26 May 2018
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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z       Ratios
Account Statement is a periodical statement reflecting events or transactions of the investors which took place during the relevant period eg.no of units purchased, no of units received as the bonus, dividend etc.
It is a formal arrangement in which an investor contributes a specified amount of money to the fund on a periodic basis. This fund allows the investors to accumulate bigger investment which leads to wealth
Active management is where the Fund House resorts to human participation in the management of Fund by a managing or team of managers. This concept would not assume efficient market scenario & hence strategic decision making plays a vital role in active management.
Adjusted Gross Income (AGI) includes tax deductions as well as taxable income (whether or not reported on the income statement)so as to reach at a figure which is actually taxable under the tax laws. This AGI helps to calculate actual taxable income: moreover, it can be seen as an intermediate step.
Adjusted NAV is the NAV of a unit adjusting for all changes caused due to dividend declaration, bonus etc. It is calculated in case of dividend pay-out plans. NAV of the fund gets reduced due to dividend pay-out , which results in lower NAV wherein NAV would have been better if dividend had not been paid out. Hence, NAV is adjusted by considering the dividend payments made out during the period under consideration. It provides an appropriate base for comparison with other mutual funds.
Administrative costs are general non- value adding expenses like postage, customer service etc.
American Depository Receipts is a dollar denominated negotiable certificate, it represents non-US Company's publically traded equity.
Affiliated companies are related companies where they will exhibit their relationship in one of the following ways. Either one of the affiliated companies will own ownership or voting power of less than 50% or, such companies are owned by another parent company (where such parent company is holding company which holds more than 50% voting power in such affiliated company.
After-tax contribution refers to any amount contributed to any account for retirement or any other account, which is arrived at after deducting tax from the taxable income. Such after-tax contributions are financially advantageous if the tax rates are expected to be on the upside in future.
After-Tax return is the total return of a fund after the effects of taxes on distribution and/ or redemptions have been assessed. It is calculated by considering the tax effect on the income. It would be calculated as follows: After tax returns = (Capital gains + Dividend received) - tax
It means a strategy in which one takes higher risks in order to achieve higher returns. One using an aggressive investment strategy often seeks to invest in young industries with high growth potential, rather than low-risk, low-yield vehicles.
Aggressive growth is an investment target that tries to obtain higher capital gain prospects amid growth stocks, which are stocks of companies that are expected to grow at a rate faster as compared to the overall stock market. In simple words, aggressive growth is an escalated, larger growth directed version of the general growth investment strategy.
It is defined by Jenson as,the excess return of the fund above risk-adjusted market return. Positive Alpha indicates that the fund has performed better and a negative alpha indicates the fund has underperformed.
American Stock Exchange is stock exchange which trades in the United States. It is located in New York City, generally referred to as Amex. It is the third largest stock exchange in United States.
Amortization refers to periodic writing off, of the issue expenses. The logic behind amortizing the issue expenses is that benefits of these expenses are spread over their entire useful life.
Annual report is a report that a fund sends to its investors that discusses the fund's performance over the past fiscal year & identifies the securities in the fund's portfolio on the last business day of the fund's fiscal year.
Annual return refers to return on investment, which is weighted annually. Such annual return may consist of dividends, interests and even capital appreciation. for e.g. if mutual fund 'A' is dividend plan where it is expected to pay out dividend @ 10% per year , then annual return of fund 'A' would be 10%.
Annualized Premium is the total amount of premium paid in a year.
This refers to the return that a fund can generate within a period of one year. For the fund whose returns are not available for one year, the returns of the fund can be annualized. It is widely used to measure the performance of a fund.
Annualized time value means the time value of the particular option divided by its strike price then annualized. One can use it to know how much value the option market is adding.
An agreed sum of money paid to an individual, for an agreed period of time. It is in exchange for a lump sum investment.
Applicable NAV is an NAV (Net Asset Value) which would be applicable for redemption or purchase or sale of Mutual fund units. Such applicable NAV will vary accordingly when the purchase or redemption request is accepted officially, which is generally based on the time stamp on such requests.
Delayed debt, liability or obligation. An amount owed and that should have been paid earlier refers to arrears. In simpler terms, arrears means being indebted. Either the payment or the receipt is delayed.
Ask price popularly known as offer price, refers to the price the seller is willing to accept for a security.
An asset allocation fund is a mutual fund that provides investors with a portfolio of a fixed or variable mix of the three main asset classes - stocks, bonds and cash equivalents - in a variety of securities. It provides mixed assets portfolio. Such fund would have an ideal mix of Debt,equity and cash equivalent instruments depending upon the individual financial goals of the particular fund. This fund aims at giving balanced returns as long as maintaining stable corpus while ensuring optimum capital appreciation.
Asset allocation basically balances the risks and rewards attached to a particular investment portfolio, by adjusting weight or percentage of each asset in that portfolio. This asset allocation would vary according to individual financial goals, risk appetite and investment time horizon.
An asset is an item of economic value that belongs to an individual, corporation or country that is expected to yield benefits in the future. It includes such items as cash, accounts receivable, inventory and other items that the company or party owns or is owed.
Automatic Investment Plan refers to an arrangement where the investors have the facility to contribute a predetermined amount to mutual fund account. Such sums are automatically deducted from the bank account as directed by the investor. It is the best way to save the otherwise disposable income.
Average cost method is applied for inventory valuation, where the average cost is calculated as follows: average cost = cost of goods / (beginning inventory +purchases).This technique can be easily applied for investment as well.
Average Credit quality is adjusted credit rating of each bond or security held under the Fund portfolio on the basis of their weightage in such portfolio. Such adjusted credit quality gives an overall idea of the average credit quality of all the investments under the portfolio under consideration.
Average duration is interest rate sensitivity indicator where the time periods are weighted for the average time periods. These time periods are precisely where the cash flows like dividend or interest or principal repayments arise or accrue to the holder. The longer a fund's duration, the more sensitive the fund is to shifts in interest rates.
Average effective duration is more refined interest rate sensitivity indicator. If the average effective duration is shorter, then such fund would be said to be lesser sensitive to interest rate volatility & vice versa.
Average Effective Maturity refers to the average of maturity periods of various investment holdings which is weighted according to their time periods in a portfolio. The measure is computed by weighing each bond's maturity by its market value with respect to the portfolio and the likelihood of any of the bonds being called.
Average market capitalization refers to the average of market capitalization of all stocks or securities that the Mutual Fund holds. It is the indicator of the size of the companies that the fund invests in.
Average Maturity is the average length of maturity periods of all asset classes in any portfolio.
Listed only for municipal-bond funds, this figure is computed by weighting the nominal maturity of each security in the portfolio by the market value of the security, then averaging these weighted figures. Unlike a fund’s effective maturity figure, it does not take into account prepayments, puts, or adjustable coupons.
It is calculated by averaging all reported composition numbers for the year. These averages provide a valuable complement to the current composition numbers; investors can compare a fund’s current level of market participation with its historical averages.
Average volume simply means the average number of shares traded daily. It is calculated as the total amount of security traded, divided by the time period in which it was traded. The unit of measurement for average volume is shares per unit of time, generally, per day.
The weighted average coupon (WAC) is the weighted-average gross interest rates of the pool of mortgages that underlie a mortgage-backed security (MBS) at the time the securities were issued. It is calculated by taking the gross of the interest rates owed on the mortgages underlying the security and weighting them according to the percentage of the security that each mortgage represents.
Weighted average price is an average of prices in which each quantity to be averaged should be allotted a weight. These weights establish the relative importance of each price on the average.
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